TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Budget & Financial Analyst
SUBJECT:Title
Consideration of a Resolution Approving the Renewal of a Five-Year Professional Services Agreement with Hinderliter, de Llamas & Associates to Provide Sales, Use and Transactions Tax for an Estimated Cost of $61,980, Plus Auxiliary Audit Recovery Services (Budgeted) (Finance Director Bretthauer).
ADOPT RESOLUTION NO. 25-0097
Body
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RECOMMENDATION:
Staff recommends that City Council adopt Resolution No. 25-0097 approving a Five-Year Professional Services Agreement with Hinderliter, de Llamas and Associates for sales, use and transactions tax services for an estimated cost of $61,980, plus auxiliary audit recovery services.
FISCAL IMPLICATIONS:
Funds are budgeted annually for this service. The cost of the five-year agreement consists of an annual base fee of $12,396, plus an annual Consumer Price Index (CPI) adjustment. In addition to the base fee, sales tax audit recovery fees are charged at 25% of the initial amount of new transactions or use tax revenue received by the City through the audit and recovery work conducted by HdL.
BACKGROUND:
The City's second largest General Fund revenue source is Sales Tax. In fiscal year 2026, the City expects to receive base sales tax totaling $11.4 million and a new local transactions and use tax (Measure MMB) totaling $5.9 million. Analyzing, auditing and reporting on these revenues is an important function that assists the City in budgeting, forecasting and tracking trends for this key funding source. The firm of Hinderliter, de Llamas & Associates has provided these services to the City since 1996.
DISCUSSION:
Founded in 1983, Hinderliter, de Llamas & Associates is the leading industry firm that offers cities, counties and districts with expert sales tax and audit servi...
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